Blockchain technology, originally developed for cryptocurrencies like Bitcoin, holds significant potential for transforming the Indian taxation system. Its decentralized, transparent, and immutable nature can address many challenges faced by tax authorities and taxpayers, such as inefficiencies, fraud, and complex compliance procedures. This study explores the potential applications of blockchain in Indian taxation, highlighting its ability to enhance tax collection, streamline processes, and reduce corruption. Blockchain can automate tax collection and payments, ensuring real-time processing of transactions with secure, tamper-proof records. This would reduce administrative overheads and improve revenue collection. By recording all financial transactions on a blockchain, the system makes tax evasion difficult, as the data is visible to tax authorities and cannot be altered. This increases transparency and enables faster audits, minimizing errors and fraud.